massmann – Page 12 – Duane Morris Vietnam

December 30, 2015 by Dr. Oliver Massmann

Vietnam – Bloomberg asking Lawyer in Vietnam Oliver Massmann on investment trends in 2016

1. Do you see a growing interest in Vietnam by foreign companies and investors? If so, why?

Yes. The country’s deeper and wider integration into the world’s economy is offering new opportunities for M&A activities. Encouraging signs for foreign investment are the recovery of the macro-economy (Vietnam economy grows at highest rate in five years), reformed policies to open a wider door to foreign investors, the conclusion of FTAs and TPP, the bouncing back of the stock market, and new regulations including wider room for foreign investors ownership in public listed companies.

The introduction of the new Investment Law, Enterprise Law and other commercial laws and economic policies are creating a better legal environment for investment and trade in general and M&A market.

Major M&A trends in Vietnam are forecasted for 2016, including bank restructuring, acquisition and mergers, growing Japanese investment in Vietnam via M&A and reform of state-owned enterprises. The derivatives market being expected to open next year will help prevent risks and boost the growth of the stock market, promoting M&A deals.

2. Do you think this trend will be sustainable next year?

The trend will continue next year. If foreign investors come to Vietnam to participate in production and business, they could approach large markets that are member countries of the TPP and EVFTA. In the past few years, there have been many large projects of the US, Japan and EU to take advantage of the upcoming trade pacts because timing is of the essence and first comers benefit the most.

Many other international groups have also expressed their intention to relocate the business and production to Vietnam. The real impacts of many recent sealed trade deals need to be assessed over a longer period, but the trend will continue until and after their effective date.

3. What does this mean for the economy and what do you think the government should do to attract more foreign investment?

Vietnam must walk its talk with regard to its Asean Economic Community Commitments (AEC) and WTO Commitments and TPP and EU Vietnam FTA Commitments to be credible for foreign investors.

Only then Vietnam will attract a greater and sustainable flow of foreign direct investment capital.

Institutional reforms, especially in public investment procedures and Dispute Resolution as well as Enforcement of Arbitration Awards are a “MUST” to facilitate foreign investment, leading to a more efficient legal framework, higher productivity, better investment environment as well as improvement in business capacity, living standards and higher level of development.

However, in the meantime, the Government should:

– Take action to solve the Non-Performing loan problem by moving away from over supporting the State Owned Enterprise sector with loans.

– Active support for the private sector with establishing a performance based access system for loans.

– Improve the Education System

– Improve labor productivity via vocational training

– Reform tortuous customs and tax procedures

– Review all sectors to take advantage of the upcoming trade pacts, create facilitated business environment and implements its International Commitments in time without delay

– Work on changing the mindset of the policy makers towards pro-Western faction rather than pro-Beijing one only. We recognize a “drift” towards China in the last decade. We hope Vietnam’s membership to the AEC, the TPP and EUVN FTA will restore balance.

– Improve transport and social infrastructure

– Continue to control inflation rate and reduce red tape. At this stage allow me to congratulate the State Bank of Vietnam which has done a great job re control of inflation in the last years.

***
Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

December 22, 2015April 21, 2016 by Dr. Oliver Massmann

Vietnam Wind Energy – Eurocham Legal Sector Committee – Meeting with Chairman of EVN Mr Duong Quang Thanh – Presenting Major Legal Issues for Getting Deals Done

On 18 December 2015, Mr. Oliver Massmann, the Managing Partner of Duane Morris Vietnam LLC, Chairman of the Legal Sector Committee of Eurocham, attended the conference “EVN-HCMC Dialogue with Korean, American and European enterprises” held by EVN HCMC.

Besides the presentation on how to improve the quality of power supply in Vietnam of EVN HCMC, Mr. Massmann had an opportunity to give a speech in Vietnamese and raise major issues in relation to wind power energy projects in Vietnam, including:
– The Government offers low FiT rate in comparison to the investment of the investors;
– Power Purchase Agreement (PPA) is required to follow a specific template, which is not bankable;
– The PPA template is unclear whether it is a “take or pay” agreement;
– There is no clear guidance and procedure to obtain the approval for the amendment of the PPA template.

The speech received the sympathy from many foreign investors in the conference. Mr. Duong Quang Thanh, the Chairman of the Members’ Council of EVN, well received the comments with positive feedback and personally congratulated Mr. Massmann for the successful speech after the event.

Followings are the brief analysis of the issues and the response from Mr. Thanh to each issue.
1. Low FiT rate
– Mr. Massmann raised the concern that the FiT, as regulated in Decision No. 37/2011/QD-TTg, is 7.8 cents USD/kWh, equivalent to 1,614VND/kWh, is very low compared to the investment capital of the investors in the projects. Accordingly, such purchase price cannot ensure the profits for the investors. Therefore, instead of fixing the price, the Government can regulate the ceiling price and give the parties the rights to negotiate the price. In addition, it would be appreciated if EVN can share information about the exact timeline that the new FiT would be published.
– As discussed by Mr. Thanh, EVN understood the concern of the investors on the low FiT. The Government is considering the issue. However, Mr. Thanh could not say exactly when the new FiT will be published.
2. The PPA template is not bankable
– Mr. Massmann recommended to enhance the bankability of the PPA, such as to clearly define force majeure events (Articles 5.1 and 5.3 of the template PPA) and distinguish the natural force majeure event and force majeure event due to political issue; to clearly define events of default of either Seller and Buyer (Articles 6.2 and 6.3 of the template PPA).
– In response, Mr. Thanh explained that the purpose of PPA template is to cut down the negotiation process between the parties. EVN noted the comments and will propose to amend the template.
3. The PPA template is unclear whether it is a “take or pay” agreement
– Mr. Massmann suggested that in order to secure and ensure the profits and revenue of the project, it must be clear that it is a “take or pay” agreement. Because under the current template, EVN will be released from the obligation to purchase the power in specific circumstances.
– Said by Mr. Thanh, for the time being, it is difficult to make clear that this is a “take or pay” agreement as the power generated from the wind power projects will depends on many factors, such as speed and force of the wind. However, EVN noted the comment and will consider to amend the PPA template.
4. No clear procedure to obtain approval for amendment of PPA
– Mr. Massmann addressed that in practice, the parties will need to agree on the additional agreements suitable for each project. Therefore, although the template PPA is compulsory, in case the parties are willing to amend, there must be a clear procedure to obtain the approval for the amendment of the PPA.
– On behalf of EVN, Mr. Thanh noted the comment and will consider to propose appropriate changes.

Although the issues raised by Mr. Massmann could not be addressed in details during the conference, Mr. Thanh said that EVN would do their best to cooperate and would research on the appropriate solution and propose to the Government for amendment in the future.
***
Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

December 15, 2015December 15, 2015 by Dr. Oliver Massmann

ベトナムにおける弁護士オリバー　マスマン「ベトナムでのM&A：市場分析の要約」

過去12ヶ月で最大且つ最も注目すべきM&A 取引
IT 及び電子機器
2014年６月、ベトナムの主要なIT企業である、FPTソフトウェアは（ヨーロッパで主要な公益企業の１つである）RWEグループの子会社であるRWE ITスロバキアを買収しました。従って、RWE IT スロバキアはFPTソフトウェアが１００％保有し、FPTスロバキアに社名を改称。この取引はFPTの最初のM&A 取引となり、またベトナム国外にあるベトナムICT企業の最初のM&A 取引となっています。しかし、この取引値は開示されていません。
石油ガス、化学物質
2014年11月、石油ガス会社のSapuraKencana Petroleum Berhad （マレーシア）は国際入札手続き後に400万米ドルでベトナム南部から3ブロックのところにあるマレーシアの国営石油会社のPetroliam Nasional Berhad（ペトロナス）の総株式を買収しました。
金融
注目すべきM&A 取引は以下の通りです。
• 2014年12月、ベトナム・フィナンシャル・トランスファー（Banknetvn）はカード決済システムや銀行間システムを提供するスマートリンクカード会社（Smartlink）と合併しました。バンクネットベトナムは中央銀行が総株式の25％を保有するこの市場で唯一のカード決済会社となります。
ベトナム国営金融
• 2015年5月、サイゴン商信株式商業銀行Sai Gon Thuong Tin Commercial Joint Stock Bank（Sacombank）はSouthern Commercial 株式銀行と合併しました。この合併により、Southern 銀行の株主はそれぞれ保有する株式に対しSacombank銀行の株式を0.75取得。Sacombank銀行という合弁企業自体は定款資本を18.85 兆ベトナムドン（8億5600万米ドル）以上保有し、総資産は290.86 兆ベトナムドン（132億米ドル）以上となっています。Sacombank銀行の株主は93.7％の議決にて合弁に同意しました。
•2015年5月、the Mekong Housing Bank とベトナム投資開発銀行との合併が完了しました。
•2015年4月、クレディセゾンはベトナムで3番目に大きな消費者金融事業であるHDファイナンスの資本の49％を保有する為におよそ5億円費やしています。
•2015年8月、メコン開発銀行（MDB）は定款資本の面で国の5大銀行の1つになる機関を形成する為にベトナム海事商業銀行（Maritime Bank）と合併をしました。近年、海事銀行の定款資本は3億7380万米ドルでメコン開発銀行は1億7523万米ドルとなり、つまり新しい金融機関は定款資本が5億4900万米ドル、総資産は52億8000万米ドルとなる見込みです。
•ベトナム工商銀行（Vietinbank）はペトロリメックス株式商業銀行（PG Bank）と合併しました。PG Bank の株とVietinbankの株の交換比率は1株：0.9株となり、Vietinbank は同社の株2億7000万株をPG Bank の株式3億株と交換できます。合併によりVietinbank の総資産は25兆ベトナムドン（11億9000万ドル）から685兆ベトナムドン（317億ドル）に増加し、定款資本は3兆ベトナムドン（1億4286万米ドル）から40兆ベトナムドン（18億5000米ドル）以上に増加する見込みとなっています。
鉱業、メタル、エンジニアリング
2014年、ベトナム石炭鉱物産業グループ（Vinacomin）はベトナム石炭の定款資本100％売却しました。つまり、VP銀行への1人鉱物金融有限会社となります。この取引値は開示されていません。
医療、バイオテクノロジー、ヘルスケア
2014年9月、スタンダード・チャータード・プライベート・エクイティ（Standard Chartered Private Equity）は9000万米ドルでベトナムの農業分野でマーケットリーダーであるAn Giang Plant Protection JSCの重要な少数株式を取得に成功しました。
その他
小売での注目すべきM&A取引は以下となります。
•2014年8月タイのBJCは総額6億5500ユーロの取引値でMetro Cash & Carry Vietnam を買収しました。
• タイのセントラルグループはグエン・キム・貿易会社のオーナーであるNKT新技術ソリューション投資開発公社の全株式の49％の買収を完了しました。取引値は開示されていません。
• ビングループ（Vingroup）はベトナム北部のオーシャンマート・リテールシステム（OceanMart retail system）を所有しているオーシャングループの傘下であるオーシャンリテール（Ocean Retail Company）の総株式の70％を取得し、またビンマートリテールグループ（ VinMart Retail Group）に改称しました。取引値は2600万米ドルとなっています。
飲食
•2015年4月、マサングループ（Masan Group）2社の株式買収を発表しました。1社はVietnam French Cattle Feed JSC (Proconco) の総株式の52％で、もう1社はAgro Nutrition Company JSC (Anco)の総株式の70%を取得しています。買収はグループがSam Kim Limited Liability Companyの総株式の99.99%を買収し、Masan Nutri-Science Companyに改称した際に行いました。
•2015年5月、Filipino firm Pilmico Foods Corporationは拡張入札の為にベトナムのいくつかの飼料会社を買収。the Aboitiz Group の子会社であるPilmicoは2014年に2800万米ドルの価格でVinh Hoan 1 Feed JSC (VHF)の総株式の70％を買収しました。
• F&N Dairy Investments Pte Ltd はビナミルク(Vinamilk)の定款資本の11.04% に相当する1億1040万株を保有しています。現在、the State Capital Investment Corporation (SCIC)に次ぐ第2位のビナミルクの株主となっています。
• Mondelēz Internationalはおよそ3億7000万米ドルでベトナムの人気スナック事業である Kinh Do Corporationの総株式の80％の買収を完了しました。
不動産
• 2014年1月、香港に拠点を置くTung Shing Groupは約1600万米ドルでフーニャン地区に所在するモーベンピック・サイゴンホテルの総株式の53％を取得しました。
• 2015年3月、ロッテグループはダイヤモンドプラザのプロジェクトの70％を取得しました。建物はは約60万米ドルの初期投資の恩恵を受けています。しかし、ロッテグループはこの取引で費やした金額を公表していません。
• 2014年11月、ホーチミン拠点の不動産会社ノバランド（Novaland）は約3兆ベトナムドン（1億4250万米ドル）の投資の恩恵を受けている4区のアイコン56（Icon 56）、ギャラクシー9（Galaxy 9）、また2区レキシントンレジデンス（Lexington Residence）を含む遅れているプロジェクトを取得しました。
• 2015年6月、香港に拠点を置く非公開投資会社のGaw Capital Partners (GCP)は、ベトナムの不動産プロジェクトのポートフォリオを取得しました。ポートフォリオは1億600万米ドルで買収され、Indochina Land Holdings 2 Ltd の下で残りの４つのプロジェクトから成り立っています。
•2015年7月初旬、マレーシアの不動産開発のGamuda Berhad の1部門であるGamuda Land VietnamはサコムリアルからCeladon City 及びThanh Cong JSC (TTC)を推定1.4 兆ベトナムドン（6410万米ドル）で買収しました。推定初期投資は 24.8兆ベトナムドン（11億米ドル）となっています。
• 2015年、ビングループは不動産、小売、物流部門において支配的なローカルM&A買収者となった。最も注目すべき追加案件は以下となります。
o マステリ・タオディエン（Masteri Thao Dien）は7500万米ドル
o ビナテックス（Vinatex）の株式保有30% が2600万米ドル
o Giang Vo Trade Show Center の株式保有90%が6900万米ドル
o Hop Nhat Express の株式保有30% は5200万米ドル
• 2014年11月、アメリカ拠点のGlobal Emerging Markets Fund (GEM)はベトナムの農場及び不動産会社であるHoang Anh Gia Laiの10％を8000万米ドルで取得することに合意しました。GEMは重役の役割を獲得し、将来的に国際市場で見込みのある企業リストを支援する予定です。
保険
2015年4月、カナダに本社を置くFairfax Financial Holdings の子会社Fairfax Asia Limited はBIDV保険総公社の総株式の35％を5000万米ドルで取得しました。従って、保険業界で戦略的投資家となっています。
M&A取引の体制での主要な動向
ベトナムでは、M&A取引は通常株式取得または資産買収のどちらかの形で行われます。
外国人購入者による株式取得は一般的にオフショアの直接投資として構成されています。新投資家は以下が可能です。
•対象企業の現在の株主から株式取得または出資が可能（例、株式会社、有限会社など）。
•対象企業の新規株式の発行を許可（例、株式会社）。
•対象企業の追加出資が可能（例、有限会社）。
資産取引の場合は、外国人購入者はベトナムに新たな子会社を設立しなければなりません。
さらに、M&A取引は合併の形を取ることが可能となります。2つ以上の同業企業は別の企業と合併することができ、全ての資産、権利、義務、利益を合併した企業へ転送でき、合併している企業を終了することが出来ます。
2014年企業法はM&A取引の結果として投資家により使用されるビジネス構造のタイプを設定することが可能となります。さらに、2014年投資法はM&A取引を規制し、その取引に投資証明書が不要であると明確に示した最初の法律です。この変化は幸いにもM&A取引を通してベトナム市場に参入または拡大しようとしている外国人投資家が経験している不明確で苦労を終わらせることができると予想されています。しかし、これらの2015年7月から施行され、また施行細則がまた発行されていないため、これらの法律が有効になるのはまだ早いと思われています。またかつての企業法及び投資法の下でライセンスを取得している企業にとって、どっちつかずの状態で企業登録またライセンス改正が残ったままとなっています。この状況はM&A取引に直接影響を及ぼします。
過去12ヶ月での未公開株式の担保入札のレベルまた範囲
M&A取引の形での投資はいまだに非公開株式投資と比較して最も一般的な投資の形です。ここ数ヶ月で、非公開株式資本はベトナムでの証券市場に続いており、特にバリューチェーン活動を行っている企業にあります。消費財やインフラが最も注目を集めている分野となっていますがただ、情報公開が制限されている為、完全に非公開株式の担保入札を評価するこはできません。
過去12ヶ月の競合規制者のアプローチ
産業貿易商（VCA）のもとでベトナム競争庁は参加企業が30％から50％関連市場の合計市場シェアを持つ場合、その取引の通知をしなければなりません。VCAは合計市場シェアの計算が正しいか、また取引が禁止されているかどうか（つまり、ある特定の場合を除いて合計市場シェアが50％を超えているかどうか）を調査します。取引は競争法の基でその取引が禁止されていないとVCAが確認書を発行した際に行われます。
更なるVCAの情報はwww.vca.gov.vn/Default.aspx?lg=2をご確認下さい。
今後12ヶ月の間にM&A市場に影響を与える主な原因
国がより深くそして広く世界市場に統合することによりM&A活動に新たなチャンスを提供しています。
もう一つの要因は国営企業（SoEs）を民営化する政府の目標が挙げられます。首相は2014年から2015年に432の国営企業を株式会社化する計画を承認しました。現在まで、企業の176が民営化しています。大手国営企業による初期公募はM&A市場に新しく魅力的な供給を作りだしています。国営企業による非中核事業の売却及び商業銀行の再構築はM&A市場をより魅力的にしています。
外国投資の奨励兆候は以下の通りです。
• 経済再起
• 外国人投資家により幅広いアクセスを許可する政策の改革
• 自由貿易協定（FTA）や環太平洋パートナーシップ（TPP）の締結
• 株式市場の跳ね返し
•上場企業の外国人投資家の許可レベルを増加する新規則
新投資法、企業法及びその他の法律や政策の導入により原則として投資や貿易、特にM&A市場に関する法的環境が改善しています。しかし、以下の要因がM&A取引に影響を及ぼしています。
• ベトナムのWTO委員会のような国際条約の地元ライセンス当局による異なる解釈及び履行
•異なるタイプの取引に適用される異なるライセンス手続き（例、外資企業または国内企業、公開会社または非公開会社、国営企業の株式または非公開株式の買収）
法的そして統治に対する障害やマクロ不安定性や市場の不透明性などが投資家にとって最大の関心事ではありますが、ベトナムにおけるM&A取引はまだ市場参入のための効果的な手段の１つとして期待できるでしょう。
ベトナムのM&A市場において期待される主な傾向は以下が含まれます。
• 銀行再編
• 買収及び反買収
• M&A取引を通じベトナムにおける日本の投資の成長
• 国営企業の改革
金融派生商品市場はリスクを防ぎ、株式市場の成長を後押しし、M&A取引を促進し役立つとされる為2016年に開かれることが期待されています。
上記の内容に関しまして、さらなる詳細やご質問がもしございましたら遠慮なくomassmann@duanemorris.comまでご連絡ください。オリバー　マスマンはドウェイン・モリス・ベトナム法律事務所のディレクターです。
（ご注意）こちらの記事は皆様に情報をお届けする目的でのみ作成・掲載しておりますので、法的なアドバイスとして提供・構成することを目的としておりません。詳細につきましては、当法律事務所の注意書きをご一読下さい。

December 15, 2015 by Dr. Oliver Massmann

 ベトナムにおける弁護士オリバー　マスマン「ベトナムでのM&A：市場分析の要約」過去12ヶ月で最大且つ最も注目すべきM&A 取引

1. 過去12ヶ月で最大且つ最も注目すべきM&A 取引、IT 及び電子機器、2014年６月、ベトナムの主要なIT企業である、FPTソフトウェアは（ヨーロッパで主要な公益企業の１つである）RWEグループの子会社であるRWE ITスロバキアを買収しました。従って、RWE IT スロバキアはFPTソフトウェアが１００％保有し、FPTスロバキアに社名を改称。この取引はFPTの最初のM&A 取引となり、またベトナム国外にあるベトナムICT企業の最初のM&A 取引となっています。しかし、この取引値は開示されていません。石油ガス、化学物質。2014年11月、石油ガス会社のSapuraKencana Petroleum Berhad （マレーシア）は国際入札手続き後に400万米ドルでベトナム南部から3ブロックのところにあるマレーシアの国営石油会社のPetroliam Nasional Berhad（ペトロナス）の総株式を買収しました。金融注目すべきM&A 取引は以下の通りです。• 2014年12月、ベトナム・フィナンシャル・トランスファー（Banknetvn）はカード決済システムや銀行間システムを提供するスマートリンクカード会社（Smartlink）と合併しました。バンクネットベトナムは中央銀行が総株式の25％を保有するこの市場で唯一のカード決済会社となります。ベトナム国営金融 •2015年5月、サイゴン商信株式商業銀行Sai Gon Thuong Tin Commercial Joint Stock Bank（Sacombank）はSouthern Commercial 株式銀行と合併しました。この合併により、Southern 銀行の株主はそれぞれ保有する株式に対しSacombank銀行の株式を0.75取得。Sacombank銀行という合弁企業自体は定款資本を18.85 兆ベトナムドン（8億5600万米ドル）以上保有し、総資産は290.86 兆ベトナムドン（132億米ドル）以上となっています。Sacombank銀行の株主は93.7％の議決にて合弁に同意しました。•2015年5月、the Mekong Housing Bank とベトナム投資開発銀行との合併が完了しました。•2015年4月、クレディセゾンはベトナムで3番目に大きな消費者金融事業であるHDファイナンスの資本の49％を保有する為におよそ5億円費やしています。•2015年8月、メコン開発銀行（MDB）は定款資本の面で国の5大銀行の1つになる機関を形成する為にベトナム海事商業銀行（Maritime Bank）と合併をしました。近年、海事銀行の定款資本は3億7380万米ドルでメコン開発銀行は1億7523万米ドルとなり、
2. つまり新しい金融機関は定款資本が5億4900万米ドル、総資産は52億8000万米ドルとなる見込みです。• ベトナム工商銀行（Vietinbank）はペトロリメックス株式商業銀行（PG Bank）と合併しました。PG Bank の株とVietinbankの株の交換比率は1株：0.9株となり、Vietinbank は同社の株2億7000万株をPG Bank の株式3億株と交換できます。合併によりVietinbank の総資産は25兆ベトナムドン（11億9000万ドル）から685兆ベトナムドン（317億ドル）に増加し、定款資本は3兆ベトナムドン（1億4286万米ドル）から40兆ベトナムドン（18億5000米ドル）以上に増加する見込みとなっています。鉱業、メタル、エンジニアリング、2014年、ベトナム石炭鉱物産業グループ（Vinacomin）はベトナム石炭の定款資本100％売却しました。つまり、VP銀行への1人鉱物金融有限会社となります。この取引値は開示されていません。医療、バイオテクノロジー、ヘルスケア。2014年9月、スタンダード・チャータード・プライベート・エクイティ（Standard Chartered Private Equity）は9000万米ドルでベトナムの農業分野でマーケットリーダーであるAn Giang Plant Protection JSCの重要な少数株式を取得に成功しました。その他
小売での注目すべきM&A取引は以下となります。•2014年8月タイのBJCは総額6億5500ユーロの取引値でMetro Cash & Carry Vietnam を買収しました。• タイのセントラルグループはグエン・キム・貿易会社のオーナーであるNKT新技術ソリューション投資開発公社の全株式の49％の買収を完了しました。取引値は開示されていません。• ビングループ（Vingroup）はベトナム北部のオーシャンマート・リテールシステム（OceanMart retail system）を所有しているオーシャングループの傘下であるオーシャンリテール（Ocean Retail Company）の総株式の70％を取得し、またビンマートリテールグループ（ VinMart Retail Group）に改称しました。取引値は2600万米ドルとなっています。飲食 • 2015年4月、マサングループ（Masan Group）2社の株式買収を発表しました。1社はVietnam French Cattle Feed JSC (Proconco) の総株式の52％で、もう1社はAgro Nutrition Company JSC (Anco)の総株式の70%を取得しています。買収はグループがSam Kim Limited Liability Companyの総株式の99.99%を買収し、Masan Nutri-Science Companyに改称した際に行いました。
3. •2015年5月、Filipino firm Pilmico Foods Corporationは拡張入札の為にベトナムのいくつかの飼料会社を買収。the Aboitiz Group の子会社であるPilmicoは2014年に2800万米ドルの価格でVinh Hoan 1 Feed JSC (VHF)の総株式の70％を買収しました。• F&N Dairy Investments Pte Ltd はビナミルク(Vinamilk)の定款資本の11.04% に相当する1億1040万株を保有しています。現在、the State Capital Investment Corporation (SCIC)に次ぐ第2位のビナミルクの株主となっています。• Mondelēz Internationalはおよそ3億7000万米ドルでベトナムの人気スナック事業である Kinh Do Corporationの総株式の80％の買収を完了しました。不動産•2014年1月、香港に拠点を置くTung Shing Groupは約1600万米ドルでフーニャン地区に所在するモーベンピック・サイゴンホテルの総株式の53％を取得しました。•2015年3月、ロッテグループはダイヤモンドプラザのプロジェクトの70％を取得しました。建物はは約60万米ドルの初期投資の恩恵を受けています。しかし、ロッテグループはこの取引で費やした金額を公表していません。•2014年11月、ホーチミン拠点の不動産会社ノバランド（Novaland）は約3兆ベトナムドン（1億4250万米ドル）の投資の恩恵を受けている4区のアイコン56（Icon 56）、ギャラクシー9（Galaxy 9）、また2区レキシントンレジデンス（Lexington Residence）を含む遅れているプロジェクトを取得しました。•2015年6月、香港に拠点を置く非公開投資会社のGaw Capital Partners (GCP)は、ベトナムの不動産プロジェクトのポートフォリオを取得しました。ポートフォリオは1億600万米ドルで買収され、Indochina Land Holdings 2 Ltd の下で残りの４つのプロジェクトから成り立っています。•2015年7月初旬、マレーシアの不動産開発のGamuda Berhad の1部門であるGamuda Land VietnamはサコムリアルからCeladon City 及びThanh Cong JSC (TTC)を推定1.4 兆ベトナムドン（6410万米ドル）で買収しました。推定初期投資は 24.8兆ベトナムドン（11億米ドル）となっています•2015年、ビングループは不動産、小売、物流部門において支配的なローカルM&A買収者となった。最も注目すべき追加案件は以下となります。 o マステリ・タオディエン（Masteri Thao Dien）は7500万米ドルo ビナテックス（Vinatex）の株式保有30% が2600万米ドルo Giang Vo Trade Show Center の株式保有o Hop Nhat Express の株式保有30% は5200万米ドル•2014年11月、アメリカ拠点のGlobal Emerging Markets Fund (GEM)はベトナムの農場及び不動産会社であるHoang Anh Gia Laiの10％を8000万米ドルで取得することに合意しました。
4. GEMは重役の役割を獲得し、将来的に国際市場で見込みのある企業リストを支援する予定です。保険。2015年4月、カナダに本社を置くFairfax Financial Holdings の子会社Fairfax Asia Limited はBIDV保険総公社の総株式の35％を5000万米ドルで取得しました。従って、保険業界で戦略的投資家となっています。M&A取引の体制での主要な動向。ベトナムでは、M&A取引は通常株式取得または資産買収のどちらかの形で行われます。外国人購入者による株式取得は一般的にオフショアの直接投資として構成されています。新投資家は以下が可能です。•対象企業の現在の株主から株式取得または出資が可能（例、株式会社、有限会社など•対象企業の新規株式の発行を許可（例、株式会社）。 •対象企業の追加出資が可能（例、有限会社）。資産取引の場合は、外国人購入者はベトナムに新たな子会社を設立しなければなりません。さらに、M&A取引は合併の形を取ることが可能となります。2つ以上の同業企業は別の企業と合併することができ、全ての資産、権利、義務、利益を合併した企業へ転送でき、合併している企業を終了することが出来ます。2014年企業法はM&A取引の結果として投資家により使用されるビジネス構造のタイプを設定することが可能となります。さらに、2014年投資法はM&A取引を規制し、その取引に投資証明書が不要であると明確に示した最初の法律です。この変化は幸いにもM&A取引を通してベトナム市場に参入または拡大しようとしている外国人投資家が経験している不明確で苦労を終わらせることができると予想されています。しかし、これらの2015年7月から施行され、また施行細則がまた発行されていないため、これらの法律が有効になるのはまだ早いと思われています。またかつての企業法及び投資法の下でライセンスを取得している企業にとって、どっちつかずの状態で企業登録またライセンス改正が残ったままとなっています。この状況はM&A取引に直接影響を及ぼします。過去12ヶ月での未公開株式の担保入札のレベルまた範囲。M&A取引の形での投資はいまだに非公開株式投資と比較して最も一般的な投資の形です。ここ数ヶ月で、非公開株式資本はベトナムでの証券市場に続いており、特にバリューチェーン活動を行っている企業にあります。
5. 消費財やインフラが最も注目を集めている分野となっていますがただ、情報公開が制限されている為、完全に非公開株式の担保入札を評価するこはできません。過去12ヶ月の競合規制者のアプローチ。産業貿易商（VCA）のもとでベトナム競争庁は参加企業が30％から50％関連市場の合計市場シェアを持つ場合、その取引の通知をしなければなりません。VCAは合計市場シェアの計算が正しいか、また取引が禁止されているかどうか（つまり、ある特定の場合を除いて合計市場シェアが50％を超えているかどうか）を調査します。取引は競争法の基でその取引が禁止されていないとVCAが確認書を発行した際に行われます。更なるVCAの情報はwww.vca.gov.vn/Default.aspx?lg=2をご確認下さい。今後12ヶ月の間にM&A市場に影響を与える主な原因。国がより深くそして広く世界市場に統合することによりM&A活動に新たなチャンスを提供しています。もう一つの要因は国営企業（SoEs）を民営化する政府の目標が挙げられます。首相は2014年から2015年に432の国営企業を株式会社化する計画を承認しました。現在まで、企業の176が民営化しています。大手国営企業による初期公募はM&A市場に新しく魅力的な供給を作りだしています。国営企業による非中核事業の売却及び商業銀行の再構築はM&A市場をより魅力的にしています。外国投資の奨励兆候は以下の通りです。•経済再起•外国人投資家により幅広いアクセスを許可する政策の改革•自由貿易協定（FTA）や環太平洋パートナーシップ（TPP）の締結•株式市場の跳ね返し•上場企業の外国人投資家の許可レベルを増加する新規則。新投資法、企業法及びその他の法律や政策の導入により原則として投資や貿易、特にM&A市場に関する法的環境が改善しています。しかし、以下の要因がM&A取引に影響を及ぼしています。• ベトナムのWTO委員会のような国際条約の地元ライセンス当局による異なる解釈及び履行
6. •異なるタイプの取引に適用される異なるライセンス手続き（例、外資企業または国内企業、公開会社または非公開会社、国営企業の株式または非公開株式の買収）。法的そして統治に対する障害やマクロ不安定性や市場の不透明性などが投資家にとって最大の関心事ではありますが、ベトナムにおけるM&A取引はまだ市場参入のための効果的な手段の１つとして期待できるでしょう。ベトナムのM&A市場において期待される主な傾向は以下が含まれます。•銀行再編•買収及び反買収• M&A取引を通じベトナムにおける日本の投資の成長 •国営企業の改革。金融派生商品市場はリスクを防ぎ、株式市場の成長を後押しし、M&A取引を促進し役立つとされる為2016年に開かれることが期待されています。
***上記の内容に関しまして、さらなる詳細やご質問がもしございましたら遠慮なくomassmann@duanemorris.comまでご連絡ください。オリバー　マスマンはドウェイン・モリス・ベトナム法律事務所のディレクターです。
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December 8, 2015 by Dr. Oliver Massmann

Lawyer in Vietnam Oliver Massmann Latest Draft Decree on Casino Business allows Vietnamese citizens to gamble in Vietnam

According to public media, a new version of the draft decree on casino (the Casino Draft) has been internally circulated to interested parties including senior experts/consultants and other State bodies of Vietnam. While full text of the draft is not made public, local newspapers give us some hints about how the Casino Draft would be shaped. For example, it is more likely that Vietnamese citizens of 21 years old or more who are able to show evidence on their ‘financial capacity’ and afford the entrance fee may gamble at casinos. Detailed conditions are still on their way.
One more notable change is that registered total investment capital would be reduced from $4 billion to $2 billion. Please be noted that the above threshold include both borrowings and equity though it is still unclear about the minimum equity that the investor must contribute.
For now, Vietnam has 04 areas which are planned to aim at entertainment complexes that have casinos inside, which are Van Don (Quang Ninh Province), Hoi An (Quang Nam Province), Ho Tram (Vung Tau Province) and Phu Quoc (Kien Giang Province). So far, only Ho Tram Project came into operations while other are still in the process of infrastructure development. However we understand that the above list is not closed. This means that investors may actively propose new areas for the Government’s consideration.
It is expected that the Casino Draft will be officially issued in March 2016 following the Communist Party’s Congress.

December 7, 2015 by Dr. Oliver Massmann

Lawyer in Vietnam Oliver Massmann EU-VIETNAM FREE TRADE AGREEMENT OFFICIALLY SIGNED

On 02 December 2015, after nearly 3 years with 14 rounds of negotiations, the Minister of Industry and Trade of Vietnam, H.E. Vu Huy Hoang and the European Commissioner for Trade, H.E. Cecilia Malmström have signed the Vietnam-EU Free Trade Agreement (FTA). Both parties will finalize the ratification process as soon as possible for the FTA to take effect from the beginning of 2018.
The FTA is considered one of the most comprehensive and ambitious trade and investment agreements. It is the second agreement in the ASEAN region after Singapore and it will intensify the bilateral relations between Vietnam and the EU.
The agreement has separate chapters on Trade of Goods, Rules of Origin, Customs and Trade Facilitation, Sanitary and Phytosanitary measures and Technical Barriers to Trade, Trade in Services, Investment, Trade Remedies, competition, State-Owned Enterprises, Government Procurement, Intellectual Property, sustainable Development, Cooperation and Capacity Building, Legal and Institutional Issues.
Nearly all customs duties – over 99% of the tariffs will be eliminated. The small remaining number is mainly due to the transition period. Vietnam will liberalize 65% of import duties on EU exports to Vietnam at entry into force and the remaining duties will be eliminated due to the next ten years; EU duties will be eliminated over a seven year period. The market will be opened for most of EU food products, i.e. wine, spirits and frozen pork meat will be liberalized after seven years and dairy products after a maximum of five years. The EU will eliminate duties for some sensitive products in the textile and footwear sector. The EU has offered access to Vietnamese exports via tariff rate quotas (TRQs), because some sensitive agricultural products will not be fully liberalized. Furthermore, the agreement will contain an annex with provisions to address non-tariff barriers in the automotive sector. Vietnamese exports of textile, clothing and footwear to the EU are expected to more than double in 2020 as a result of the FTA.
The FTA will help to increase quality of investment flows from EU, accelerate the process of sharing expertise and transfer of green technology and the creation of more employment activities.
The real wages of skilled laborers may increase by up to 12% while real salary of common workers may rise by 13%. The macro economy will be stable and inflation rate is controlled. Vietnam’s business activities will be booming in the next few years once the EU- Vietnam FTA officially comes into force and Government’s policies as well as institutional reforms start showing their positive effects.
Vietnam’s GDP is expected to increase by 0.5% annually, increase in exports is 4-6% per year. If this trend continues until 2020, Vietnam’s exports to EU will increase by USD 16 billion. Until 2025, the FTA is estimated to generate an additional 7-8% of GDP above the trend growth rate.
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Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

November 30, 2015 by Dr. Oliver Massmann

Lawyer in Vietnam Oliver Massmann New Decree guiding the Law on Investment What you must know:

On 12 November 2015, after months of delay, the Government has finally issued Decree No. 118/2015/ND-CP (“New Decree”) on detailing and guiding the implementation of certain provisions of the Law on Investment.
Set out below are major worth-noting points in this New Decree:
Investment conditions for foreign investors
Investment conditions for foreign investors are defined as conditions that foreign investors must satisfy when investing in conditional business sectors applicable for foreign investors pursuant to Vietnam’s laws, ordinances, decrees and international treaties on investment.
These conditions include:
– Conditions on foreign ownership of charter capital in an economic organization;
– Conditions on investment form;
– Conditions on scope of investment activities;
– Conditions on a Vietnamese partner participating in investment activities; and
– Other conditions pursuant to laws, ordinances, decrees and international treaties on investment.
The above conditions must be satisfied when foreign investors:
– Making investment to establish an economic organization;
– Contributing capital, purchasing shares, capital contribution portion in an economic organization;
– Investing in the form of business cooperation contract;
– Receiving investment projects transferred from another investor or other cases of receiving transferred investment projects; or
– Amending or supplementing investment business lines or sectors of foreign invested economic organizations.
Conditional business sectors applicable for foreign investors as well as the corresponding conditions are not included in the New Decree but will be published on the National information gate on foreign investment. For business sectors whose conditions are not specified anywhere in Vietnam’s WTO Commitments and other international treaties on investment or not yet committed (“Uncommitted Sectors”), the investment registration authority must seek approval of the Ministry of Planning and Investment and other specialized ministries on the foreign investment.
It is worth noting that the New Decree recognizes ‘licensing precedent’, meaning where foreign investment in Uncommitted Sectors has been approved and such Uncommitted Sectors have been published on the National information gate on foreign investment, any later foreign investors making investment in the same Uncommitted Sectors will no longer need the approval of the specialized managing ministry.
Licensing procedures on investment registration and enterprise registration by foreign investors
Instead of go through 2 different steps, namely (1) applying for issuance of an Investment Registration Certificate; and (2) applying for issuance of an Enterprise Registration Certificate when establishing an enterprise in Vietnam, foreign investors now can apply for these two certificates at the same time. Specifically:
– Foreign investors submit the applications for issuance of an Investment Registration Certificate and an Enterprise Registration Certificate to the investment registration authority;
– Within 01 working day from the receipt of the applications, the investment registration authority sends the application for enterprise establishment registration to the Business Registration authority for review and notifying the investment registration authority of its decision;
– If there is any request for amendments or supplements to either the application for investment registration or enterprise establishment, the investment registration authority will provide the investors a single response within 5 working days from the receipt of the applications.
The coordination regime between the investment registration authority and the business registration authority will be detailed by the Ministry of Planning and Investment later.
Securing the implementation of an investment project
Investors that are granted, or leased land by the Government, or allowed by the Government to change the land use purpose, with certain exceptions, must make a deposit from 1-3% of the total investment capital recorded in a document approving the investment plan or in the Investment Registration Certificate based on a progressive basis, in particular:
– For capital part of up to VND300 billion, the deposit rate is 3%;
– For capital part from VND300 billion to VND1,000 billion, the deposit rate is 2%;
– For capital part from VND1,000 billion, the deposit rate is 1%.
M&A procedures

There is explicitly no requirement of application for Investment Registration Certificate in acquisitions of target companies by foreign investors.
However, foreign investors must register its acquisition of the target company if:
– They contribute capital to, purchase shares or capital contribution portion of an economic organization doing business in conditional sectors which are applicable for foreign investors;
– The capital contribution, shares and capital contribution portion result in F1, F2 and F2’ mentioned in the graph above holding 51% or more of the target company:
o Increasing foreign ownership rate from below 51% to more than 51%; and
o Increasing the existing foreign ownership rate of 51% to a higher ownership rate.
After completion of the acquisition, the target company must carry out procedures to change its members or shareholders at the business registration authority.
For investment of foreign investors other than F1, F2 and F2’, the target company only needs to carry out procedures to change its members or shareholders at the business registration authority without the foreign investors having to register the acquisition transaction with the investment authority.

November 24, 2015 by Dr. Oliver Massmann

Lawyer in Vietnam Oliver Massmann PUBLIC MERGERS AND ACQUISITIONS IN VIETNAM: MARKET ANALYSIS OVERVIEW

Largest / most noteworthy public M&A transactions in the past 12 months
IT and electronic equipment
In June 2014, Vietnam’s leading IT corporation, FPT Software, acquired RWE IT Slovakia, a subsidiary of the RWE Group (one of Europe’s leading utility companies). Therefore, RWE IT Slovakia will be 100% owned by FPT Software and be renamed FPT Slovakia. This deal is also the first M&A transaction of FPT and first M&A deal by a Vietnam ICT company outside Vietnam. However, the deal value has not been disclosed.
Oil gas and chemicals
In November 2014, SapuraKencana Petroleum Berhad (Malaysia) acquired the entire interest of Malaysia’s national oil company Petroliam Nasional Berhad (Petronas) in three blocks offshore from southern Vietnam for US$400 million after an international bidding process.
Financial
Noteworthy public M&A transactions include the following:
• In December 2014, Vietnam National Financial Switching JSC (Banknetvn) merged with Smartlink Card JSC (Smartlink). Banknetvn then became the only card switching company on the market in which the central bank holds 25% of the total shares.
• In May 2015, Sai Gon Thuong Tin Commercial Joint Stock Bank (more commonly known as Sacombank) merged with Southern Commercial Joint Stock Bank. Following the merger, Southern Bank shareholders obtained a 0.75 Sacombank share for each share they held. The merged entity, to be called Sacombank, will have a charter capital of more than VND18.85 trillion (US$856 million) and total assets of over VND290.86 trillion (US$13.2 billion). Sacombank’s shareholders agreed to the merger by a 93.7% vote.
• In May 2015, the merger between the Mekong Housing Bank and the Bank for Investment and Development of Vietnam was completed.
• In April 2015, Credit Saison spent about JPY5 billion to take a 49% stake in HDFinance, Vietnam’s third largest consumer finance business.
• In August 2015, the Mekong Development Bank (MDB) was set to merge with the Vietnam Maritime Commercial Bank (Maritime Bank) to form an institution that would be among the country’s five largest banks in terms of charter capital. Currently, Maritime Bank’s charter capital is US$373.8 million and MDB’s is US$175.23 million, meaning that the new banking institution would have a charter capital of US$549 million and total assets of US$5.28 billion.
• The Vietnam Bank for Industry and Trade (Vietinbank) will merge with Petrolimex Group Commercial Joint Stock Bank (PG Bank). The change rate for PG Bank shares to Vietinbank shares is 1:0.9, which means Vietinbank will exchange 270 million of its shares for 300 million of PG Bank shares. The merger will increase Vietinbank’s total assets by VND25 trillion (US$1.19 billion) to VND685 trillion (US$31.7 billion), and its chartered capital by VND3 trillion (US$142.86 million) to more than VND40 trillion (US$1.85 billion).
Mining, metals and engineering
In 2014, Vietnam Coal and Minerals Group (Vinacomin) sold 100% of its charter capital in Vietnam Coal – Mineral Single Member Financial Limited Company to Vietnam Prosperity Bank (VP Bank). The deal value has not been disclosed.
Pharmaceuticals, biotechnology and healthcare
In September 2014, Standard Chartered Private Equity successfully acquired a significant minority stake in An Giang Plant Protection JSC, a market leader in the Vietnam agricultural sector for US$90 million.
Other
Retail. Noteworthy public M&A deals include the following:
• In August 2014, Thailand’s Berli Jucker Public Company Limited (BJC) bought Metro Cash & Carry Vietnam in a deal valued at EUR655 million.
• Thailand’s Central Group completed the acquisition of 49% of the total shares in NKT New Technology and Solution Investment and Development Corporation, the owner of Nguyen Kim Trading Company. The deal value has not been disclosed.
• Vingroup bought 70% of the total shares in Ocean Retail Company, a member of Ocean Group that owns the OceanMart retail system in northern Vietnam, and renamed it VinMart Retail Group. The deal value is US$26 million.
Food. Noteworthy deals include the following:
• In April 2015, Masan Group announced the acquisition of stakes in two companies. It acquired 52% of the total shares in Vietnam French Cattle Feed JSC (Proconco) and 70% of the total shares in Agro Nutrition Company JSC (Anco). The acquisition occurred when the group bought 99.99% of the total shares in Sam Kim Limited Liability Company and renamed it Masan Nutri-Science Company.
• In May 2015, Filipino firm Pilmico Foods Corporation acquired some feed companies in Vietnam in an expansion bid. Pilmico, a subsidiary of the Aboitiz Group, had bought 70% of the total shares in Vinh Hoan 1 Feed JSC (VHF) at US$28 million in 2014.
• F&N Dairy Investments Pte Ltd holds 110.4 million shares of Vietnam Dairy Products Joint Stock Company (Vinamilk), equivalent to 11.04% of its charter capital. It is now the second largest shareholder of Vinamilk after the State Capital Investment Corporation (SCIC).
• Mondelēz International completed the acquisition of 80% of the total shares in Kinh Do Corporation, a popular snack business in Vietnam, for about US$370 million
Real estate. Noteworthy deals include the following:
• In January 2014, the Hong Kong-based Tung Shing Group acquired 53% of the total shares in Mövenpick Saigon Hotel in Phu Nhuan District, for approximately US$16 million.
• In March 2015, Lotte Group acquired 70% of the Diamond Plaza project. The building had benefited from an initial investment of about US$60 million. However, Lotte Group did not reveal the amount of money spent on the deal.
• In November 2014, Ho Chi Minh City-based property company, Novaland Joint Stock Company, bought some stalled projects, including Icon 56 and Galaxy 9 in District 4 and Lexington Residence in District 2, which had benefited from investments of about VND3 trillion (US$142.5 million).
• In June 2015, Gaw Capital Partners (GCP), the Hong Kong-based private equity firm, acquired an existing portfolio of real estate projects in Vietnam. The portfolio was purchased for US$106 million and is comprised of four of the remaining projects originally held under Indochina Land Holdings 2 Ltd.
• In early July 2015, Gamuda Land Vietnam, a division of Malaysian property developer Gamuda Berhad acquired Celadon City from the Saigon Thuong Tin Real Estate JSC (Sacomreal) and the Thanh Thanh Cong JSC (TTC) for an estimated VND1.4 trillion (US$64.1 million). The estimated original investment is VND24.8 trillion (US$1.1 billion).
• In 2015, Vingroup has become a dominant local M&A acquirer with a long list of transactions in the real estate, retail and logistics sectors. Its most notable additions include:
o Masteri Thao Dien for US$75 million;
o 30% stake ownership in Vinatex for US$26 million;
o 90% stake ownership in Giang Vo Trade Show Center for US$69 million; and
o 30% stake ownership in Hop Nhat Express for US$52 million.
• In November 2014, the US-based Global Emerging Markets Fund (GEM) agreed to acquire 10% of Hoang Anh Gia Lai, a Vietnamese plantation and real estate company, for US$80 million. GEM will obtain a board seat and will support the company potential listing on the international markets in the future.
Insurance. In April 2015, Canada-headquartered Fairfax Financial Holdings, through its subsidiary Fairfax Asia Limited, acquired about 35% of the total shares of the Bank for Investment and Development of Vietnam Insurance Joint Stock Corporation for US$50 million, therefore becoming a strategic investor in the firm.
The major trends in the structuring of public M&A transactions
In Vietnam, M&A transactions usually take the form of either share or asset acquisitions, with share acquisition transactions outnumbering asset acquisition transactions.
Share acquisitions by foreign purchasers are commonly structured as offshore direct investments. The new investor can:
• Acquire shares or capital contributions from an existing shareholder in the target (for example, a joint stock company, limited liability company, and so on).
• Subscribe for newly issued shares of the target (for a joint stock company).
• Make further capital contributions to the target (for a limited liability company).
In the case of an asset deal, a foreign purchaser must generally establish a new subsidiary in Vietnam.
In addition, M&A transactions can also take the form of a merger. One or more companies of the same type can be merged into another company by transferring all assets, rights, obligations and interests to the merged company, terminating the existence of the merging company.
The 2014 Enterprise Law sets out the types of business structuring that can be used by investors as a result of M&A transactions. In addition, the 2014 Investment Law is the first law that regulates M&A transactions and clearly provides that such transactions do not require an investment certificate. This change will hopefully end years of uncertainty and frustration faced by foreign investors seeking entry into the Vietnam market or expansion through M&A transactions. However, it is still early to assess the effectiveness of these laws, as they have only been implemented since July 2015, and their guiding documents have not been issued yet. This has left enterprise registration and licence amendments in limbo, particularly for enterprises that have obtained licences under the former Enterprise Law and Investment Law. This situation has a direct impact on M&A transactions.
The level/extent of private equity-backed bids in the past 12 months
Investment in the form of M&A transactions is still the most popular form compared with private equity investment. In recent months, private equity funds have been following the securities market in Vietnam, especially companies carrying out value chain operations. Consumer goods and infrastructure are the sectors that attract the most attention. However, due to limited publicly available information, it is not possible to fully assess the level of private equity-backed bids.
The approach of the competition regulator(s) in the past 12 months
The Vietnam Competition Authority under the Ministry of Industry and Trade (VCA) must be notified of the transaction if participating companies have a combined market share in the relevant market of 30% up to 50%. The VCA will then examine whether the calculation of the combined market share is correct and whether the transaction is prohibited (that is, whether the combined market share exceeds 50%, except in certain cases). The transaction can be conducted when the VCA issues a written confirmation that the transaction is not prohibited under competition law.
For more information on the VCA, see www.vca.gov.vn/Default.aspx?lg=2.
Main factors affecting the public M&A market over the next 12 months
The country’s deeper and wider integration into the world’s economy is offering new opportunities for M&A activities.
Another factor is the government’s target to equitise state-owned enterprises (SoEs). The Prime Minister approved the plan to turn 432 SoEs into joint stock companies in the 2014-2015 period. To date, 176 of such companies have been equitised. Initial public offerings by major SoEs have been creating new, attractive supplies to the M&A market. The restructuring of commercial banks and divestments from non-core business by SoEs have made the M&A market more attractive.
Encouraging signs for foreign investment include:
• Economic recovery.
• Reformed policies to allow wider access to foreign investors.
• The conclusion of free trade agreements (FTAs) and the Trans-Pacific Partnership (TPP).
• The bouncing back of the stock market.
• New regulations that increase the authorised levels of foreign investment in public listed companies.
The introduction of the new Investment Law, Enterprise Law and other laws and policies are creating an improved legal environment for investment and trade in general, and the M&A market in particular. However, the following factors also affect M&A transactions:
• Divergent interpretations and implementations by local licensing authorities of international treaties such as Vietnam’s WTO Commitments.
• Different licensing procedures applied to different types of transactions (for example, for foreign invested companies and domestic companies, public companies and private companies, and for buying state-owned shares or private shares).
Although legal and governance barriers, along with macro instability and the lack of market transparency are still the greatest concerns for investors, M&A deals in Vietnam are still expected to be one of the key, effective channels for market entry.
The major expected trends in the Vietnam M&A market include:
• Bank restructurings.
• Acquisitions and anti-acquisitions.
• Growing Japanese investment in Vietnam through M&A transactions.
• Reform of SoEs.
The derivatives market is expected to open in 2016, which will help in preventing risks, boosting the growth of the stock market and in promoting M&A deals.

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Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

November 24, 2015 by Dr. Oliver Massmann

Lawyer in Vietnam Oliver Massmann Public Merger and Acquisitions in Vietnam

There has been a steady growth in M&A activities in Vietnam since Vietnam officially became a member of the World Trade Organization (WTO) in 2007. The first M&A wave in Vietnam occurred during the period between 2008 and 2013, with a reported total value of US$15 billion. Japanese investors made about US$1.2 billion worth of deals in 2012. Japan is the leading country for M&A deals in Vietnam in terms of both quantity and value. This helped the M&A market in Vietnam to reach a peak of US$5.1 billion in 2012. Fast-moving consumer goods are considered to be the most attractive sector, with a total value of M&A transactions up to US$1 billion, accounting for 25% of the total M&A value in Vietnam. The retail and real property sectors are also very active, with high value M&A deals. Vietnam’s M&A market experienced a strong recovery in 2014, with six deals being reportedly made every week. There were a total of 313 M&A deals in 2014, with a value of US$2.5 billion, a 15% increase compared with the previous year.
How to obtain control of a public company
The most common means of obtaining control over a public company are as follows:
The acquisition of shares/charter capital through:
buying shares/charter capital from the existing shareholders of the company;
buying shares/charter capital of a listed company on the stock exchange; and
public share purchase offer.
Through a merger. The 2014 Law on Enterprises sets out the procedures for company mergers by way of a transfer of all lawful assets, rights, obligations and interests to the merged company, and for the simultaneous termination of the merging companies.
Through the acquisition of assets.
There are restrictions on the purchase of shares/charter capital of local companies by foreign investors. In addition, the law does not yet allow merger or assets acquisition transactions where a foreign investor is a party.
Securities of public companies must be registered and deposited at the Vietnam Securities Depository Centre before being traded.
Depending on the numbers of shares purchased, an investor can become a controlling shareholder. Under the Vietnam Law on Securities, a shareholder that directly or indirectly owns 5% or more of the voting shares of an issuing organisation is a major shareholder. Any transactions that result in more than 10% ownership of the paid-up charter capital of the securities company must seek approval of the State Securities Commission (SSC).
What a bidder generally questions before making a bid
Before officially contacting the potential target, the bidder conducts a preliminary assessment based on publicly available information. The bidder then contacts the target, expresses its intention of buying shares/subscribing for its shares and the parties sign a confidentiality agreement before the due diligence process. The confidentiality agreement basically includes confidentiality obligations in performing the transaction. The enforcement of confidentiality agreements by courts in Vietnam remains untested.
A bidder’s legal due diligence usually covers the following matters:
Corporate details of the target and its subsidiaries, affiliates and other companies that form part of the target.
Contingent liabilities (from past or pending litigation).
Employment matters.
Contractual agreements of the target.
Statutory approvals and permits regarding the business activities of the target.
Insurance, tax, intellectual property, debts, and land-related issues.
Anti-trust, corruption and other regulatory issues.
Restrictions on shares transfer of key shareholders
Founding shareholders can only transfer their shares to other founding shareholders of the company within three years from the issuance of the Enterprise Registration Certificate. After then, the shares can be transferred freely. An internal approval of the general meeting of shareholders is always required if:
The company increases its capital by issuing new shares.
There is any share transfer of the founding shareholders within the above three-year period.
If the sale and purchase is a direct agreement between the company and the seller in relation to an issuance of shares, the selling price must be lower than the market price at the time of selling, or in the absence of a market price, the book value of the shares at the time of the approval plan to sell the shares. In addition, the selling price to foreign and domestic buyers must be the same.
When a tender offer is required
A tender offer is required in the following cases:
Purchase of a company’s circulating shares that results in a purchaser, with no shareholding or less than a 25% shareholding, acquiring a 25% shareholding or more.
Purchase of a company’s circulating shares that results in a purchaser (and affiliated persons of the purchaser), with a 25% or more shareholding, acquiring a further 10% or more of circulating shares of the company.
Purchase of a company’s circulating shares that results in a purchaser (and affiliated persons of the purchaser), with a 25% shareholding or more, acquiring a further 5% up to 10% of currently circulating shares of the company within less than one year from the date of completion of a previous offer.
There is no guidance on building a stake by using derivatives. In addition, the bidder cannot purchase shares or share purchase rights outside the offer process during the tender offer period.
The bidder must publicly announce the tender offer in three consecutive editions of one electronic newspaper or one written newspaper and (for a listed company only) on the relevant stock exchange within seven days from the receipt of the State Securities Commission’s (SSC’s) opinion regarding the registration of the tender offer. The tender offer can only be implemented after the SSC has provided its opinion, and following the public announcement by the bidder.
Making the bid public
The offer timetable is as follows:
The bidder prepares registration documents for its public bid to purchase shares.
The bidder sends the bid registration documents to the SSC for approval and, at the same time, sends the registration documents to the target.
The SSC reviews the tender documents within seven days.
The board of the target must send its opinions regarding the offer to the SSC and the shareholders of the target within 14 days from receipt of the tender documents.
The bid is announced in the mass media (although this is not a legal requirement).
The length of the offer period is between 30 and 60 days.
The bidder reports the results of the tender to the SSC within 10 days of completion.
Companies operating in specific sectors (such as banking, insurance, and so on) can be subject to a different timetable.
Form of consideration and minimum level of consideration
Under Vietnamese law, shares can be purchased by offering cash, gold, land use rights, intellectual property rights, technology, technical know-how or other assets. In practice, acquisitions are most commonly made for cash consideration.
In cases of full acquisition of state-owned enterprises, the first payment for the share purchase must not be less than 70% of the value of such shares, with the remaining amount being paid within 12 months.
In transactions involving auctions of shares by state-owned enterprises, the purchaser must make a deposit of 10% of the value of the shares registered for subscription based on the reserve price at least five working days before the auction date included in the target company’s rule. Additionally, the purchaser must transfer the entire consideration for the shares into the bank account of the body conducting the auction within ten working days of the announcement of the auction results.
In the case of a public tender offer, the payment and transfer of shares via a securities agent company appointed to act as an agent for the public tender offer must comply with Decree 58/2012/ND-CP.
Delisting a company
If a company seeks voluntarily de-listing, it must submit an application for de-listing that includes the following documents:
A request for de-listing.
For a joint stock company:
the shareholders’ general meeting approval of de-listing of the stock;
the board of directors’ approval of de-listing of bonds; and
the shareholders’ general meeting approval of de-listing of convertible bonds.
The members’ council (for a multi-member limited liability company) or the company’s owner (for a single member limited liability company) approval of de-listing of bonds.
For a securities investment fund, the investors’ congress approval of de-listing of the fund’s certificate.
For a public securities investment company, the shareholders’ general meeting approval of stock de-listing.
A listed company can only de-list its securities if de-listing is approved by a decision of the general meeting of shareholders passed by more than 50% of the voting shareholders who are not major shareholders.
If a company voluntarily de-lists from the Hanoi Stock Exchange or Ho Chi Minh Stock Exchange, the application for de-listing must also include a plan to deal with the interests of shareholders and investors. The Hanoi Stock Exchange or Ho Chi Minh Stock Exchange must consider the request for de-listing within ten and 15 days from the receipt of a valid application, respectively.
Transfer duties payable on the sale of shares in a company
Depending on whether the seller is an individual or a corporate entity, the following taxes will apply:
Capital gains tax. Capital gains tax is a form of income tax that is payable on any premium on the original investor’s actual contribution to capital or its costs to purchase such capital. Foreign companies and local corporate entities are subject to a corporate income tax of 22% (20% from 1 January 2016). However, if the assets transferred are securities, a foreign corporate seller is subject to corporate income tax of 0.1% on the gross transfer price.
Personal income tax. If the seller is an individual resident, personal income tax will be imposed at the rate of 20% of the gains made, and 0.1% on the sales price if the transferred assets are securities. An individual tax resident is defined as a person who:
stays in Vietnam for 183 days or longer within a calendar year;
stays in Vietnam for a period of 12 consecutive months from his arrival in Vietnam;
has a registered permanent residence in Vietnam; or
rents a house in Vietnam under a lease contract of a term of at least 90 days in a tax year.
If the seller is an individual non-resident, he is subject to personal income tax at 0.1% on the gross transfer price, regardless of whether there is any capital gain.
Payment of the above transfer taxes is mandatory in Vietnam.
Restrictions on repatriation of profits and/ or foreign exchange rules for foreign companies
If the target company in Vietnam already has an investment certificate, it must open a direct investment capital account at a licensed bank in Vietnam. Payment for a share purchase by a foreign investor must be conducted through this account. The account can be denominated in Vietnamese dong or a foreign currency. In addition, if the foreign investor is an offshore investor, it will also need to open a capital account at a commercial bank operating in Vietnam to carry out the payment on the seller’s account and receive profits.
If the target company in Vietnam does not have an investment certificate, the foreign investor will need to open an indirect investment capital account for payment to the seller and remittance of profits.

October 12, 2015 by Dr. Oliver Massmann

ベトナムでの弁護士　オリバー　マスマン TPP協定の最新ニュースベトナムは最大の利益を得る国

7月下旬ハワイでの合意に失敗し先送りとなっていたTPP交渉が2015年10月5日の月曜に5日間に及ぶ協議の末、大筋合意に達しました。

TPPは世界最大の国がいくつか含まれ、世界のGDPの約40％また世界貿易の3分の1を占め、参加国の年間国内総生産は28兆ドルに達するこれまでに協議されている大規模な貿易協定の中の１つです。交渉参加国はアジア太平洋地域全体が含まれ、オーストラリア、ブルネイ、カナダ、チリ、日本、マレーシア、メキシコ、ニュージーランド、ペルー、シンガポール、米国そしてベトナムが加盟国となっています。TPPは21世紀貿易協定と言われ、地域世界貿易投資に関する雛形となり、次世代問題を具体化しています。

TPPでは電子商取引、金融サービス、国境電子通信サービスなどの近年世界貿易の障害となっているいくつかの貿易問題に取り組んでいます。その他の分野横断的な問題は経済上の国営企業の役割、政府調達などが挙げられます。

　ベトナムは米国と強く結びつくことでこの貿易協定で最大の利益を得る国となり、中国が徐々に競争上の優位性を失いつつある製造業などの分野で競争力が高くなると予想されています。ベトナムはまた日本、マレーシア、ブルネイ、ニュージーランドといった米国が正式な貿易協定を確立したいと望む国々の中の1国として考えられています。統計によるとTPPに参加することで、ベトナムのGDPが基礎シナリオよりさらに13.6％増加するでしょう。

TPPの主要ポイントは以下となります。
【自由貿易圏】関税割当は安価な海外製品から国内産業を守るための貿易措置として、また特に発展途上国の国々が利益を集める効率的な手段として長い間利用されてきました。しかし、関税割当はここ数年その他の非関税措置とあまり比較されなくなってきています。TPPでは、関税及び非関税障壁は商品やサービス分野の全ての取引で減少または実質的に除外されています。TPP締約国であるベトナムはこの貿易協定により今後ビジネスチャンスが増え市場参入などの多くの利益を得ることができると期待されています。

商品貿易
関税及び非関税障壁の減少や廃止により、雇用創出の増加また8億人規模の市場取引が増加すると見込まれています。ほとんどの関税撤廃がすぐに施行され、その他の商品にかかる関税は一定期間にわたり減少する予定です。農産物に対する規制的な政策の除外や削減のために、食品安全性の強化される必要があります。ベトナムの農産物はその他のTPP加盟国への輸出機会が増加し、低賃金労働や天然資源により競争力の優位性を得ると期待されています。

サービス貿易
全てのTPP締約国にとって一番重要となるのがサービス貿易です。その為、12カ国はこの地域での自由貿易に同意する必要があります。基本的なWTOの原則（内国民待遇、最恵国処置、市場参入、現地拠点）などを取り入れること以外に、TPPは他国のTPP締約国からのサービス供給の為自国の市場を開放し、そうでない場合は公約に示すようなネガティブな取り組みもする必要があります。

【包括的貿易】TPPは全てのレベルそして規模のビジネスの参加また発展を促進させる公約を含んでいます。ベトナムで非常に一般的な中小企業ビジネスは条約を理解し、チャンスを活用し、将来的に迅速な成長をする為の独自の貿易能力を構築する為に他国から支援されるでしょう。

【政府調達】全てのTPP締約国は透明性、予測可能で無差別政府調達市場を確保する必要があります。内国民待遇と差別をしないことは基本方針となります。政府は入札者に情報公開をし、入札者が準備し入札するために十分な時間を与え、入札者の守秘性を維持する責任があります。TPPはまた双方が公平且つ原則に従った入札を評価し、事前に明確に記入した入札書類を基に入札を認め、苦情や紛争解決に関する効果的なレジメの作成などをする必要があります。中国の入札者は低品質サービスだが低価格で提供する為圧倒的に入札で勝利する背景があるため、業績不振で低品質の入札資格を剥奪することにより、自国の利益を守る為にこれらの規則は全ての加盟国特にベトナムは必要となります。

【国営企業】ベトナムとマレーシアには多くの国営企業があります。米国及びその他の加盟国も同様に公共サービスやその他の活動に関わる国営企業を保有しています。TPP交渉者は国営企業に付与された優遇措置や他国の商品やサービスに対する国営企業の非差別化に関する規制施行の方法に重点を置いています。

TPPに参加することは、ベトナムにとって2014年から2015年の間に432の国営企業を民営化することになります。残りのベトナム国営企業はまたTPPでの標準規定を満たす為に厳格な改革をする必要があります。

【透明性及び腐敗対策】TPPは商品統治、また長い間投資家がビジネス拡大への決定を思い留まる原因の一つとして考えられてきたトランスペアレンシー・インターナショナルでの腐敗指数が世界175か国中119位に位置するベトナムのような国に対する贈収賄や腐食性の抗腐敗の規則を含んでいます。TPP締約国は国際貿易や投資に影響を与える公務員による汚職行為を犯罪とする法律を採用するまたは維持するか事で合意しました。締約国はまた効果的に腐敗防止の法律または規則を施行することを約束しました。TPPの加盟国として、透明性及び「清潔面」においてベトナムのビジネス環境はより改良され、今後さらに外国人投資家にとって道が開かれるでしょう。

　その他の重要な貿易と貿易関連の問題点、つまり関税と貿易円滑化、衛生植物検疫措置、労働、環境、紛争解決などに関してはTPPの第30章に説明されています。全てのTPP参加国は各国のメンバーにより国内で承認された協定に関する文書を公表するため手続きに取り掛かっています。
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〈ご注意〉こちらの記事は皆様に情報をお届けする目的でのみ作成・掲載しておりますので、法的なアドバイスとして提供・構成することを目的としておりません。詳細につきましては、当法律事務所の注意書きをご一読下さい。
オリバー・マスマンはドウェイン・モリス・ベトナム法律事務所のディレクターです。上記に関するご質問等はomassmann@duanemorris.comまでお気軽にご連絡ください